Proponents, opponents present at Empire rate hearing

Empire is seeking to increase its annual electric revenues by about $29.5 million, or 9.6 percent, to recover from the increasing price of fuel and purchased power costs, said Gregg Ochoa, commission public information coordinator, at the hearing at Missouri Southern State University.

The hearing was the first of three scheduled with the commission. A second hearing begins today at noon at MSSU, and a final hearing will be 6 p.m. tonight in the ITV Room at Reeds Spring High School, 20227 State Highway 413.

Empire said at the hearing the cost of purchased energy has been increasing because of issues with coal delivery in the region. The company said in a news release that it has “encountered extremely volatile and escalating natural gas prices” since its last rate increase.

The proposed increase would add about $11.11 to the monthly bill of a residential customer who uses 1,000 kilowatt-hours of electricity per month.

Patricia Miller, a Joplin resident who owns stock in the company, spoke in favor of the increase. Miller said she thinks Empire has paid the high price for fuel and needs customer assistance in order to help the company move forward.

Joyce Hogan, of Joplin, said she thinks customers should not suffer because of the company’s purchase of the Missouri natural-gas holdings of Aquila Inc. in June. She also said the company had bad customer service because a crew hired by the utility did a poor job of trimming the trees in her yard.

"Consumers aren’t interested in Aquila; they are interested in quality," she said. "This region is low income and cannot afford a rate increase. It’s like asking your neighbor to make your car payments for you."

Amy Bass, the company's director of corporate communications, said Empire purchased Aquila's Missouri natural gas operations because the company saw the acquisition as an opportunity for growth. Electricity is a summer-intense business, whereas natural gas is winter intense; Empire wanted a balance between the two seasons, Bass said.

“The purchase of Aquila has nothing to do with our request for increased rates,” she said.

The commission, by law, has 11 months from Empire’s February 2006 filing to make a decision on the case. The commission will conduct evidentiary hearings Sept. 5-8 and Sept. 11-15, 2006 in Room 310 of the Governor Office Building in Jefferson City.[[In-content Ad]]